BBC
Single fares will cost £1 and a full day pass will cost £3 for those aged 16 to 21
Eligible passenger and Cardiff student Evan Stoddart, 20, said he did not use the bus at the moment, but the £1 fare may encourage him to do so.
He said it was hugely important to keep public transport costs as low as possible, to encourage people to get to and from school and work easily.
Holly Well, 20, from Exeter, goes to university in Cardiff and said she mainly walked around the city, but believed the reduced fares would enable more opportunities for young people.
"A lot of young people cannot afford to drive," said Holly, adding that "trains are really expensive".
Both students agreed it would make them think twice about booking a taxi.
Oliver Reaper is currently without a car and says having access to affordable transport is always a win
Oliver Reaper, who lives in Cardiff and relies on public transport as he is currently without a car, said cheaper was always better.
The 24-year-old said having access to more affordable transport would have made all the difference to him as a student getting in and around the city on a tight budget.
To get the cheaper fares, those eligible will need to apply for a mytravelpass via the Transport For Wales (TFW) website, verifying their age in order to access the discount, which is available until September 2026.
Bus services are involved on a voluntary basis and include all major bus operators.
No additional routes will be added but tickets will apply to any single journeys that start in Wales.
The Welsh government said £15m was being provided over two financial years (2025-26 and 2026-27) to support the scheme as part of a budget deal with the leader of the Welsh Liberal Democrats, Jane Dodds.
TFW
Lee Robinson from Transport For Wales says he hopes the scheme will keep younger people using bus services
Lee Robinson, executive director for regional transport and integration at TfW, said they had already received more than 10,000 applications for the mytravelpass.
"I think it's a really important scheme for young people to encourage them to use public transport at an affordable price," he said.
"It's a really good opportunity to get young people travelling by public transport and set some of those behaviours as a foundation for the future."
David Beer from independent transport watchdog Transport Focus said the scheme was an "attractive proposition".
"It's a time when we want to encourage people to get out of other forms of transport and get onto buses.
"It's really playing a part in terms of making that an attractive proposition."
But he added a national survey in Wales, England and Scotland conducted by the watchdog found that young people's satisfaction with value for money was lower in Wales than it was elsewhere.
"Fewer than half of young people are satisfied with value for money in Wales," he said.
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Transport Focus says across the UK people in Wales are less satisfied with bus costs
Ken Skates, Minister for Transport and North Wales, said: "I am delighted to be launching a scheme that offers affordable bus travel for young people to help them access education, training, employment, and leisure, as well as supporting our efforts to encourage more people to use public transport, reduce carbon emissions and tackle poverty."